Wednesday, November 19, 2008

Event: Letter from the UAW.

This email arrived in my Inbox this morning (four days late). I pass it along in the interest of promoting a respondible loan to the Big Three through congress. Please consider writing a short letter. My thoughts and qualifications are here.

Dear Connor Coyne,

Please respond right away to this urgent request by calling yourSenators or Representative through this toll-free number: (877)331-1223. Or send an e-mail:http://www.unionvoice.org/campaign/autojobs

The auto industry needs help in Congress right away -- and if wedon't get it, the jobs and benefits of hundreds of thousands ofour active and retired members and millions of other Americansare at risk.

Next week the House and Senate are expected to vote onlegislation to provide an emergency $25 billion bridge loan toGM, Ford and Chrysler to help weather the current severe creditand economic crises. Without this assistance, there is a realdanger that the three companies will run out of cash and beforced to cease all manufacturing and business operations in thenear future.

The collapse of these companies would be devastating:

-- In addition to the hundreds of thousands of Big Three workerswho would lose their jobs, up to 3 million other workers couldsee their jobs disappear at dealers, suppliers of components andmaterials, and other businesses that depend on the autoindustry.

-- Almost 1 million retirees and their spouses and dependentscould suffer cuts in their pension benefits and the loss ofhealth insurance coverage.

-- The federal pension guarantee program could be saddled withenormous liabilities, jeopardizing its ability to protectbenefits for millions of other workers.

-- Because of the importance of the auto industry to our entireeconomy, the collapse of the Big Three auto companies wouldaggravate the current recession, creating further hardships forworking families and communities across the United States.

-- Revenues to federal, state and local governments would besharply reduced, forcing drastic cuts in vital social servicesat the time they are most needed.

Congress can prevent these devastating consequences. The federalgovernment has already stepped forward to provide assistance toWall Street and financial institutions. It is now time forCongress to help Main Street by providing urgently needed helpfor the auto companies.

You have probably seen or heard some commentators who are tryingto blame you and your fellow UAW members for the currentsituation of the companies by attacking our "overly rich" wagesand benefits. We need to rebut these false charges, and make itclear that active and retired UAW members have already madeenormous sacrifices in the 2005 and 2007 collective bargainingagreements.

Other commentators have tried to blame the Big Three for theircurrent situation by saying it is attributable to theirinsistence on producing "gas guzzling" vehicles. This overlooksthe major progress the companies are making in bringing forwardmore fuel efficient vehicles. More importantly, it ignores thefact that the current crisis is due to the huge drop in overallauto sales that has been caused by the larger credit andeconomic crises that have engulfed our entire nation.

Auto sales in October were a mere 10.8 million on an annualizedbasis, the lowest level in 25 years. All automakers reportedsteep declines in their sales. The problem is not that consumersdon't want to buy the quality products that GM, Ford andChrysler are making. The problem is that consumers have stoppedbuying vehicles from any companies.

Please call your Representative and Senators now. Urge them tovote for legislation to provide an immediate $25 billion bridgeloan to the Big Three auto companies. Tell them this isessential to prevent the liquidation of these companies anddevastating consequences for millions of workers and retireesand for our entire economy.

You can use the following toll-free number to call yourRepresentative and Senators: (877) 331-1223. Or send an e-mail:http://www.unionvoice.org/campaign/autojobs

The legislation to provide assistance to the auto industry willlikely be taken up by the House and Senate sometime next week.So please call or e-mail right away!

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Visit the web address below to tell your friends about this.

If you received this message from a friend, you can sign up forUAWire at:

http://www.unionvoice.org/Uawire/join.html?r=p1AD3mEqTS5HE

UPDATE: Here is the letter I sent to Jan Schakowsky, Dick Durbin, and Barack Obama.

Dear Senator Durbin and Congresswoman Schakowsky,

I know you're getting a ton of mail on this subject right now, and are well-versed in the pros and cons. I will try to be succinct.

I strongly opposed you both on your support for the Wall Street bailout because I saw it passed with what I saw as a lack of discretion. I registered protest votes due to this (something I haven't done since 1996), because I do think that congress should be penalizing any corporate interest that relies on the taxpayers to save them from bankruptsy. In practice, they are essentially holding the economy ransom to get what they need to continue.

This loan to the auto industry seems more sound to me than the other bailout. It is a much smaller amount (not that billions are anything to sneeze at), and I understand the myriad ways that the automotive industry impacts the American economy at large.

Here's the thing: you shouldn't have to write a blank check in order to help the auto industry. The Big Three have taken some steps in necessary retooling and restructuring; demand that they take more. Eliminate what fluff you can, and pass a bill with stringent requirements. You win with the Big Three for giving them breathing room. You win with the public for representing their interest. And with me, I will both happily and enthusiastically vote for you, because I expect my senators and representatives to fight for me, and I am proud when they do so.

I know that this sort of middle-road and straightforward approach is often taken off the table (and for all the wrong reasons); you cannot help the the environment in which you are debating this issue. But this is a straightforward case, and this is the most reasonable solution.